Maybe it's just me but all the photos of the facilities in that presentation make it look like an industrial ruin. SCOK operates their own coal mine, a coal washing facility, a coal trading business and a coking facility. Without the planned new coking facility there is very limited room for future growth.

SCOK plans construction of a new coking facility that would increase current capacity by factor 4.

"Plans to complete construction and start production by the first calendar quarter of 2011, assuming sufficient capital for construction (approximately $65 million in incremental capital) available by March 2010"

- adjusted cash about $8 million (incl. recent private placement)- SinoCoking has received approval for a project loan in the amount of RMB 300 million ($USD 44 million)

Looks like the company is on track to start construction of the new coking facility this spring, another round of equity financing seems likely in 2010, though.

Projections of the company are based on a very optimistic scenario for steel demand in the next five years. Here are some articles on the subject of coking coal prices and steel over-capacity:

So.. bottom line is that betting on 10% annual growth for steel demand and accordingly rising prices for coking coal seems more risky than serving the power generation industry with thermal coal. The pricing situation could change dramatically until Q1/2011 and not just for a tighter lending environment. China's largest steelmaker Baoshan Iron & Steel already stepped back from a planned price increase for February.